2 FTSE 250 stocks I’d buy today

first_img Enter Your Email Address 2 FTSE 250 stocks I’d buy today Our 6 ‘Best Buys Now’ Shares The FTSE 250 index can be a great place to find attractive stocks. In this area of the UK stock market, many companies are growing rapidly yet still operate very much under the radar.Here, I’m going to highlight two FTSE 250 stocks I’d buy for my own portfolio today. I believe both stocks have the potential to deliver the winning combination of capital gains and dividends in the long run.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Britons are spending their Covid-19 savings here One FTSE 250 stock that strikes me as a ‘buy’ right now is Howden Joinery (LSE: HWDN). It’s a leading supplier of fitted kitchens that has over 730 depots across the UK.Howden Joinery posted a solid set of full-year 2020 results last month. For the year ended 26 December 2020, sales only fell 2.3%. That’s pretty impressive given that the UK experienced the worst economic conditions in 300 years.However, what stands out to me is that second half sales were actually up a huge 16% compared to the equivalent period in 2019. This reinforces my view that a large chunk of the money Britons have saved over the last year on lockdown is going to flow into home renovations.It’s also worth noting that Howden Joinery declared a special dividend of 9.1p for the year, in lieu of the cancelled final dividend for 2019. This suggests to me management is confident about the future.There are risks to be aware of here, of course. In its full-year results, management said that given the economic uncertainties, it remains “cautious” about underlying market conditions.Overall however, I see a lot of investment appeal here. The stock currently trades on a forward-looking price-to-earnings (P/E) ratio of 22, which I feel is quite reasonable given the growth potential.One of the best FTSE 250 growth stocksAnother FTSE 250 stock I like right now is Softcat (LSE: SCT). It’s a leading IT infrastructure company that provides solutions in relation to cloud computing, cybersecurity, and data analytics. Its customers include the likes of Virgin Money, Nuffield Health, and Henry Boot.Softcat is seeing strong demand for its services at the moment due to the enormous amount of digital transformation that’s occurring within the UK. Over the last two years, for example, revenue has jumped 35%.Looking ahead, I expect the company to keep growing at a healthy clip. Analysts expect revenue growth of about 10% for the year ending 31 July. That’s followed by top-line growth of 9% the next year. Given its broad exposure to the technology industry, I see the stock as a great ‘picks-and-shovels’ play on the technology theme.Softcat is quite an expensive stock. Currently, its forward-looking P/E ratio is about 36.6. This adds some risk to the investment case. If future performance is disappointing, the stock could fall significantly.However, Softcat appears to be a high-quality business that’s both very profitable (three-year average return on equity of 60%) and financially strong. So, I’m comfortable paying a higher valuation for this FTSE 250 stock. Simply click below to discover how you can take advantage of this. Are you on the lookout for UK growth stocks?If so, get this FREE no-strings report now.While it’s available: you’ll discover what we think is a top growth stock for the decade ahead.And the performance of this company really is stunning.In 2019, it returned £150million to shareholders through buybacks and dividends.We believe its financial position is about as solid as anything we’ve seen.Since 2016, annual revenues increased 31%In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259Operating cash flow is up 47%. (Even its operating margins are rising every year!)Quite simply, we believe it’s a fantastic Foolish growth pick.What’s more, it deserves your attention today.So please don’t wait another moment. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Image source: Getty Images. center_img Get the full details on this £5 stock now – while your report is free. FREE REPORT: Why this £5 stock could be set to surge Edward Sheldon owns shares in Softcat. The Motley Fool UK has recommended Howden Joinery Group and Softcat. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Edward Sheldon, CFA | Monday, 15th March, 2021 | More on: HWDN SCT See all posts by Edward Sheldon, CFAlast_img

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